alphason

Looks like that to me to, But I would guess you need to determine who has first taxing rights? As it first says may be taxed by Thailand, then goes on to say may be taxed in Canada up to 15%, I would maybe guess Thailand has the first shot, then Canada can charge the difference up to 15%. But wouldn't the DTA still prevent double taxation? Canada giving a credit for whatever was paid in Thailand leaving the difference if any due to Canada up to the limit 15%. ???

From my research and advice about the UK Thai DTA, I am informed that the term "may be taxed" actually provides exclusive taxing rights only to that country. This is the intended legal meaning of the phrase. If the property is located in Canada then only Canada has taxing rights.

I'm in a very similar position, spent a lot of time trying to find answers, read a lot and even HMRC can't really tell me, The most credible thing I have found is from Sherrings https://sherrings.com/capital-gains-personal-income-tax-thailand.html I contacted them to confirm and they told me this was correct under the UK / Thailand double tax agreement immovable property in the UK is subject to the Capital Gains Tax legislation in the UK, and not subject to Thailand's tax. For a resident of Thailand deriving capital gains income from a source outside of Thailand and bringing it into Thailand**. Personal income tax on the amount of capital gains income (the amount of the proceeds exceeding the costs of the investment). **not including capital gains from immovable property which most double tax agreements prescribe the tax rights for the country in which the immovable property is situated. This is discussed in a few of my earlier posts before if you look. I am hoping this is correct from Sherrings they should be well qualified to answer this, trouble is no one would want to be the first to try I think the other option as rules stand is to be non Thai tax resident for the year the gain is remitted to Thailand. Or IF the rules change to worldwide in the year the property is sold in the UK.

duplicate

But we don't have to file a joint return though, if I bring in an amount under the threshold? Easier to keep things as they are for now. My wife has always filed a single return. I have filed returns before in just my name to get savings interest back but not for a couple of years sice my main bank stopped deducting the interest.

I had seen that people were saying the filing threshold was more than this 210K Thb? My wife works and does a single tax return (just for her employment but files to get some back for her parents and insurance) not a married tax return. So in this is the case is the filing threshold 60K for me? (I was working it being 60K+150K (I'm under 60)). I have purposely not sent much money over this year since I learned about these changes, so far this year I have sent over to myself very little and direct to my wife little as gifts, just to see how things pan out.

Thanks, I shouldn't have used that original quote, Q5 is about foreign source assessable income in general and rightly says it's not taxed in Thailand when not a tax resident. I'm referring to, the gain from sale of immovable property situated outside Thailand for a Thai tax resident is only assessable in the country where the immovable property is located, as per Sherrings website https://sherrings.com/capital-gains-personal-income-tax-thailand.html (This has been confirmed to me as correct by Sherrings in the case of UK property not subject to Thai tax)

Thanks, Where is this Sherrings Q&A thats referred to? According to Sherrings Thailand Capital Gains Income Personal Tax - SHERRINGS For a resident of Thailand deriving capital gains income from a source outside of Thailand and bringing it into Thailand**. Personal income tax on the amount of capital gains income (the amount of the proceeds exceeding the costs of the investment). **not including capital gains from immovable property which most double tax agreements prescribe the tax rights for the country in which the immovable property is situated. and also List of assessable (taxable) income Thailand Personal Tax Assessable Income - SHERRINGS (5) Income derived from rental of 1. Land, buildings, house (8) Other income includes income derived from 1. Transfers of immovable property in Thailand. Of the 30ish types of income listed this was only one that says 'In Thailand'. I have mentioned this another topic, but here seems busier. Sherrings also confirmed this was correct under the UK / Thailand double tax agreement immovable property in the UK is subject to the Capital Gains Tax legislation in the UK, and not subject to Thailand's tax.

This could be it, explains why its so hard find information freely. And I'm not sure how qualified some of these online experts actually are. If we paid for tax consultations we could still end up with two differing views. At the moment I am clinging to what Sherrings told me, he answered clearly and did not try to sell me anything even I asked what they might charge to handle the Thai side of things when it came to selling UK property.

Expat Tax Thailand, anyone tried the free consultation? The Tax Director from Sherrings seems very well qualified and experienced from the website, I'd just like to hear it from more sources.

Yes it makes the whole thing unclear. Keep looking and reading more articles mostly from experts who clearly aren't, the more I read the more confused I become. I did find a useful list of assessable Income, section 40 of the revenue code, it lists all the types of income that are assessable including: (5) Income derived from rental of 1. Land, buildings, house (8) Other income includes income derived from 1. Transfers of immovable property in Thailand. What I found interesting is for the whole list of 30ish types of income this was only one that said 'In Thailand' like it excludes property outside of Thailand? Its worth a read of the Sherrings website. Maybe foreign rental income is taxable, less 30% expenses without proof or actual expenses with proof - I don't know what is allowed as expenses, agent fees, mortgage interest, maintenance, insurance? This could be over 30% if allowed. If tax is due on the gain from sale of foreign property are there allowances over the purchase price, for the time you may have lived in the property (equiv to PRR in UK), costs of buying/selling, mortgage interest fees? When would Thailand count the gain from, (in UK its from when the law changed April 2015), gain from Jan 2024 when it became taxable in Thailand? So many questions and hard to find answers. Maybe Sherrings again. I did contact another tax adviser who asked for 12kish THB to detail how the DTA would override Thai tax laws. Hoping it becomes clearer soon, no one want to be the guinea pig without having the facts first.

Yes 18%/24% CGT in UK, but that could be 5-35% in Thailand as PIT, 25% Band 1mTHB is only £21K ish 30% band 2-5MTHB £42K, 35% band 5MTHB £105K. And UK non residents are only taxed on gain from April 2015. I would feel happier to get more confirmation also, there is so much contradictory information and guess work. I dont expect there is anyone at HMRC or Thai RD who would be able to interpret the DTA, but This Tax Director at Sherrings should be a reliable resource though if you look at the website. Maybe the way is consult someone like this as a group.

Thats what I have been told, see above reply

I've been looking into the same thing I saw an article on Sherrings website regarding CGT on sale of a UK rented property but the wording used is the same 'may be taxed' ... "(1) Capital gains from the alienation of immovable property, as defined in paragraph (2) Article 7, may be taxed in the Contracting State in which such property is situated." So I contacted Sherrings, and the International Tax Director confirmed to me this would not be subject to Thailand Tax law. He said regarding Article 14, paragraph 1, of UK Thai DTA. The words "may be taxed" do not have the usual laymans meaning, instead the legal meaning of these words is that because the UK's tax law has Capital Gains Tax legislation, then the immovable property in the UK is subject to the Capital Gains Tax legislation in the UK, and not subject to Thailand's tax law.

I would think he does, this is the only person that seemed to answer the question and explain why. I thought a big company like this wouldn't be so helpful to an individual so I was impressed with the quick response from Sherrings.